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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Give the necessary Journal entries:
(i) The Directors of Devendra Ltd. resolved on 1st January, 2010 that Equity Shares of ₹10 each, ₹8 paid-up, be forfeited for non-payment of the final call of ₹2. On 1st February, 60 of these shares were reissued at ₹7 per share, as fully paid-up.
(ii) Virender Ltd. forfeited 20 shares of ₹100 each (₹60 called-up) issued at par to Mukesh, on which he had paid ₹20 per share. Out of these, 15 shares were reissued to Sanjeev as ₹60 paid-up for ₹45 per share.
(i) Books of Devendra Ltd.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2010 Jan 1 | Equity Share Capital A/c (100 × ₹10) Dr. | 1,000 | ||
| To Share Forfeiture A/c (100 × ₹8) | 800 | |||
| To Calls-in-Arrears A/c (100 × ₹2) | 200 | |||
| (100 shares of ₹10 each forfeited for non-payment of the ₹2 final call) | ||||
| Feb 1 | Bank A/c (60 × ₹7) Dr. | 420 | ||
| Share Forfeiture A/c (60 × ₹3) Dr. | 180 | |||
| To Equity Share Capital A/c (60 × ₹10) | 600 | |||
| (60 shares reissued at ₹7 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 300 | |||
| To Capital Reserve A/c | 300 | |||
| (Balance in Share Forfeiture Account of the 60 reissued shares transferred to Capital Reserve) |
Working Note: Share Forfeiture credit ₹8/share, less ₹3/share discount on reissue = ₹5/share × 60 shares = ₹300.
(ii) Books of Virender Ltd.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (20 × ₹60) Dr. | 1,200 | |||
| To Share Forfeiture A/c (20 × ₹20) | 400 | |||
| To Calls-in-Arrears A/c (20 × ₹40) | 800 | |||
| (20 shares of ₹100 each, ₹60 called-up, forfeited for non-payment of ₹40 per share) | ||||
| Bank A/c (15 × ₹45) Dr. | 675 | |||
| Share Forfeiture A/c (15 × ₹15) Dr. | 225 | |||
| To Share Capital A/c (15 × ₹60) | 900 | |||
| (15 shares reissued to Sanjeev for ₹45 per share, as ₹60 paid-up) | ||||
| Share Forfeiture A/c Dr. | 75 | |||
| To Capital Reserve A/c | 75 | |||
| (Balance in Share Forfeiture Account of the 15 reissued shares transferred to Capital Reserve) |
Working Note: Share Forfeiture credit ₹20/share, less ₹15/share discount on reissue = ₹5/share × 15 shares = ₹75.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.72 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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